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Problem 2: Preparing Adjusting Journal Entries (14 marks) For XYZ Co., the following information is relevant at its year-end December 31: a. Estimated depreciation on office equipment purchased this year on March 31 is $4,000 per annum b. The Prepaid Insurance account has a $2,400 debit balance before adjustment. An examination of insurance policies shows $600 of unexpired insurance c. The company has three office employees who each earn $100 per day for a five-day workweek that ends on Friday. The employees were paid on Friday, December 26 and have worked full days on Monday, Tuesday and Wednesday, December 29, 30 and 31 d. On November 1, the company received 6 months' rent in advance from a tenant whose rent is $700 per month. The $4,200 was credited to the Unearned Rent account e. The company has just completed a half of a 6-month consulting project at the end of December. It has not recorded or billed the client yet for the $4,300 per month fee it has agreed with the client. f. The company had $2,000 of office supplies at the beginning of the current year. During this year, $7,800 of office supplies was purchased. On December 31, a physical count of office supplies showed $2,500 of unused supplies available. g. Three months' property taxes, at $800 per month, have accrued. This additional amount of taxes expense has not been recorded. Required: Prepare general journal entries on December 31 to record these year-end adjustments

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